Quora Answer: How Can Some People Blow Massive Lottery Winnings in Just a Few Years?

The following is my answer to a Quora question: “How can some people blow hundreds of millions of dollars they have won from the lottery in just a few years?”

It happens, and it is because of their lack of financial education.  People who have substantial wealth often have financial advisors, investment bankers, tax consultants and wealth managers to manage their assets.  Someone who has not moved in those circles might not realise how important it is to have these people.  One of the first impulses could be to buy a nice car, without considering that a car is a depreciating asset.  Or, they might buy an expensive home, without considering the tax implications, the maintenance costs and resale value.  What they most certainly tend to forget to do is get liability protection: the more you have, the more you have to lose.  Insurance and investments are far down the list.  As such, the wealth quickly dissipates because expensive toys and assets require expensive maintenance, and there is little consideration for sustainability.